[News] Pittsburgh Penguins Sold to Fenway Sports Group

[Locke]

I didnt see this posted anywhere which was odd because it happened today and the Penguins happen to be in town.

The Pittsburgh Penguins and Fenway Sports Group entered an agreement Monday in which FSG will acquire controlling interest in the team.

Mario Lemieux, a two-time Stanley Cup winner with the Penguins as a player, will remain part of the ownership group. He and Ron Burkle became majority owners of the Penguins in 1999; Burkle also will remain part of the ownership group.

The sale requires approval of the NHL Board of Governors.

Fenway Sports Group owns the Boston Red Sox of Major League Baseball, Liverpool of the English Premier League, Roush Fenway Racing of NASCAR and Fenway Park. John Henry is its principal owner

https://www.nhl.com/news/pittsburgh-...am/c-328445474

I'm not sure what the financial state of the Penguins was, I assumed it was healthy enough with the arrival of the new stadium, but its another direction.

As a Liverpool fan as well I've been nothing but pleased about how FSG has steered the team so this ought to bode well for Pens fans.

Also...so long Penguins and thanks for the 2 points!

[DeluxeMoustache]

I found this interesting. I thought they mentioned on the broadcast that they sold for around 900 million after being valued around 675 last year by Forbes

The franchise has been consistently successful for about a decade and a half

Having said that, their historical success was first when they had tanked for generational player Lemieux, and then this last decade and a half started when they were bad enough at the right time to win the Crosby lottery

Crosby is now 17 years in to his career and he and Malkin probably have, what, 5 years left?

I was just wondering about the timing of paying a premium for a franchise with its elite talent in their mid 30s

[bizaro86]

Originally Posted by DeluxeMoustache

I found this interesting. I thought they mentioned on the broadcast that they sold for around 900 million after being valued around 675 last year by Forbes

The franchise has been consistently successful for about a decade and a half

Having said that, their historical success was first when they had tanked for generational player Lemieux, and then this last decade and a half started when they were bad enough at the right time to win the Crosby lottery

Crosby is now 17 years in to his career and he and Malkin probably have, what, 5 years left?

I was just wondering about the timing of paying a premium for a franchise with its elite talent in their mid 30s

I think winning is probably less a factor in the price than things like the potential for an even bigger RSN deal when theirs expires in 8 years.

[Strange Brew]

Pittsburgh is a great sports town, probably one of the best in North America and investing in pro sports franchises has proven to be an incredible investment for almost everyone who has done it.

I think the CBA in hockey which locks in their biggest cost at 50% of revenues, while also excluding some major revenue streams, is very, very attractive to investors.

[agulati]

Wasn’t it just a few years back that there was talk of Penguins potentially being a target for relocation. Good to see them build some stability

[Vinny01]

Originally Posted by agulati

Wasn’t it just a few years back that there was talk of Penguins potentially being a target for relocation. Good to see them build some stability

Wasn’t that nearly 20 years ago? Definitely pre Crosby, they built a new rink there 12 years ago there hasn’t been this concern for a while.

[D as in David]

Do the Penguins own their rink? If so, that doesn't seem like a great return for a franchise and a rink. I guess the ROI would also depend on how much they contributed to the building if the rink.

[bizaro86]

Originally Posted by D as in David

Do the Penguins own their rink? If so, that doesn't seem like a great return for a franchise and a rink. I guess the ROI would also depend on how much they contributed to the building if the rink.

They don't own the rink. They contributed a bit, but most of the money came from a casino. They licensed a new casino nearby at the same time and a condition was they pay for the arena.

[FlamesAddiction]

Originally Posted by Strange Brew

Pittsburgh is a great sports town, probably one of the best in North America and investing in pro sports franchises has proven to be an incredible investment for almost everyone who has done it.

I think the CBA in hockey which locks in their biggest cost at 50% of revenues, while also excluding some major revenue streams, is very, very attractive to investors.

It's a great sports town, and a great hockey town when they have an elite team, but historically they jump off the bandwagon fast when things aren't going well. They almost left town before drafting Lemieux and then again before drafting Crosby. It may not be that way in the future and money won't be an issue with these owners like it was in the past when they declared bankruptcy like three times.

It's crazy to think how different it would be if Lemieux never walked into their lives. He originally planned on refusing to play for the Pens and they talked him into giving it a chance. What a windfall that ended up being for them.

[N-E-B]

Originally Posted by Vinny01

Wasn’t that nearly 20 years ago? Definitely pre Crosby, they built a new rink there 12 years ago there hasn’t been this concern for a while.

Sidney Crosby basically saved that franchise, which is why some people feel the 2006 draft “lottery” wasn’t much of a lottery at all.

[chedder]

Originally Posted by N-E-B

Sidney Crosby basically saved that franchise, which is why some people feel the 2006 draft “lottery” wasn’t much of a lottery at all.

If we're talking conspiracies you would have to think the dumpster fire up north getting McSaviour would be the same rigged game too then. Could you imagine how bad that team would be without him?

[CaptainYooh]

How cool it is to have a name John Henry. "And your John Henry here Mr. Henry." Did he play himself in "Moneyball"?

[Locke]

Originally Posted by CaptainYooh

How cool it is to have a name John Henry. "And your John Henry here Mr. Henry." Did he play himself in "Moneyball"?

He did not, but he was a character in the film.

John Henry and FSG do believe in the underlying fundamentals of Moneyball, but they've taken it to much higher levels.

[CaptainYooh]

I did checked it already. The actor looked almost exactly like him.

[lazypucker]

Yes, cue MoneyPuck and the Player Signing Committee...

[Puppet Guy]

Originally Posted by FlamesAddiction

It's crazy to think how different it would be if Lemieux never walked into their lives. He originally planned on refusing to play for the Pens and they talked him into giving it a chance. What a windfall that ended up being for them.

I can't think of another franchise that owes so much to one person the way the Penguins do to Mario.

[Canada 02]

I saw that Mario owned 40% of the Penguins, and Burkle owned 25%

Mario's ownership stake was compensation for his player salary that was owed, was it not?

[FireGilbert]

Seems like a trend in sports ownership lately towards consolidation, creating both local sporting monopolies and huge multi sport conglomerates.

I wonder if CSEC will ever be sold? Knowing the Flames we'd get some disappointing mediocre group that already owns Tottenham and the Cleveland Guardians or similar.

[Locke]

Originally Posted by FireGilbert

Seems like a trend in sports ownership lately towards consolidation, creating both local sporting monopolies and huge multi sport conglomerates.

I wonder if CSEC will ever be sold? Knowing the Flames we'd get some disappointing mediocre group that already owns Tottenham and the Cleveland Guardians or similar.

Thanked for unnecessary Tottenham dig. Unnecessary...but accurate.

[Locke]

Originally Posted by lazypucker

Yes, cue MoneyPuck and the Player Signing Committee...

Frankly though...would that be such a bad thing?

If you're spending millions and millions of dollars you ought to know what you're getting.